Oil Prices Hit Four Year Low at $58
Oil prices have plummeted to their lowest level in four years, with West Texas Intermediate (OIL.WTI) crude dropping more than 19% in April while Brent trades near $61 a barrel. This marks the largest monthly decline since November 2021, driven by escalating U.S.-China trade tensions and OPEC+ supply increases.
Trade War and OPEC+ Squeeze Markets
President Donald Trump’s April 2 announcement of sweeping tariffs, particularly targeting China, has severely dampened the energy consumption outlook. The U.S. economy contracted in the first quarter for the first time since 2022, while China’s factory activity fell into its worst contraction since December 2023. Major Wall Street banks including Goldman Sachs and JPMorgan have slashed their oil price forecasts, now projecting Brent to average $68.23 per barrel this year, down from March’s forecast of $72.13.
Meanwhile, OPEC+ is considering accelerating production increases at its May 5 meeting, with Saudi Arabia reportedly prepared to weather prolonged low prices. Despite U.S. crude inventories unexpectedly dropping by 2.7 million barrels last week, market volatility has intensified, with the United States Oil Fund experiencing erratic trading flows and retail investor participation amplifying price swings.
OIL.WTI (D1)
Oil is currently retesting 4-year lows at 58 USD. Bears are likely to retest low at 55 USD while bulls will try to regain 60 USD.
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
